Biobased Products Markets and possibilities in Europe and around the world

1. Biobased Products
Markets and possibilities in Europe
and around the world
9 May 2012
Derek Atkinson
Presenting to: © 5/10/2012 1

2. Agenda
 Purac at a glance
 Developments in biobased products
 Developments in bioplastics
 EU policies to implement a biobased economy
 Purac investments in a biobased economy
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3. Purac at a glance
 80 years experience in the development, production and
marketing of natural lactic acid
 Focus on:
 Food preservation
 Green chemicals and biobased building blocks
 Global network and manufacturing footprint with the core
of the development activities in the Netherlands
 Turnover of 407 mil EUR (2011)
 1050 Employees
 Growth driven by innovation
 Fermentation is a key competence for Purac
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4. Global presence
Purac sales office
Purac regional application center
Purac factory

5. 100,000 mton Lactic Acid plant Purac Thailand
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6. 75,000 mtons PLA monomers plant Purac Thailand
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7. 5,000 mton PLA plant at Synbra, NL
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8. Developments in biobased products
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9. Chemicals volume 20 times lower than
fuels, but similar in total added value
300 895
43% Fuels
71%
42% Chemicals
3%
26%
15% Other
Volume Value
Added Source: New Scientist 2007
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10. Leading chemicals, fuels and commodities players are
building biobased chemicals into their portfolios
Commercial stage Not yet commercial
Epi- Ethyl-
Acrylic Chloro- ene
hydrin (PE)
EO/
Acid
MEG
Adipic (3- or
Acid 2-HPA) 1,3-PDO
(Nylon 6,6) (PTT)
PTA Amino
(PET) acids for
L+/D-
Succinic acid Lactic acid forms
(PBS,BDO) (PLA)
Bio-based
Bio-based
1,4-BDO products
products Surfactants
Butanol PHA
Farnesene Green
solvents
Acetic
Isoprene
acid
Poly-
propylene Citric acid Songyuan
(PP) Ji'an Biochem.
Source: ICIS
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11. Value generated per dry ton biomass
Malaysian Ringgits
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12. Global market for fermentation
derived fine chemicals
Chemical 2009 USD millions 2013 USD millions
Amino Acids 5,410 7,821
Enzymes 3,200 4,900
Organic Acids 2,651 4,036
Vitamins 2,397 2,286
Antibiotics 1,800 2,600
Xanthan 443 708
Total 15,901 22,351 (+40%)
Source: Frost & Sullivan 2011
Advances in Fermentation
Technologies An Industry Overview
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13. Biobased chemicals assessed for market
penetration and reference materials
Biobased chemical Reference petrochemical
Ethyl lactate Ethyl acetate
Ethylene Ethylene
Adipic acid Adipic acid
Acetic acid Acetic acid
n-Butanol n-Butanol
PTT PTT & Nylon 6
PHA HDPE
PLA PET and PS
FDCA Terephthalic acid
Succinic acid Maleic anhydride
Source: Patel, M and others The BREW Project (adapted)
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14. Future GHG savings per ton and annual savings
assuming complete replacement fossil based chemical
Product GHG savings Capacity GHG savings
ton CO2 / ton product million tpa million tpa CO2
Acetic acid 1.2 8.3 9.6
Acrylic acid 1.5 2.9 4.4
Adipic acid 3.3 2.4 7.9
Butanol 3.9 2.5 9.6
Caprolactam 5.2 3.9 20.0
Ethanol 2.7 2.6 7.1
Ethyl lactate 1.9 1.2 2.2
Ethylene 2.5 100.0 246
Lysine 3.6 0.6 2.3
Succinic acid 5.0 1.4 6.8
1,3-propanediol 2.9 - -
PHA 2.8 57.0 160
PLA 3.3 11.1 36.5
Source: Hermann, G.G. And others 2007
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15. Developments in bioplastics
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16. Global production capacity bioplastics
Capacity 1600
in tons
* 1000 1400
1200
1000
800
Capacity
600
400
200
0
2006 2007 2008 2009 2010 2011 2012 Year
Source: European Bioplastics Association
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17. Global bioplastics capacity by 2015
Total capacity Bio-PE
1,709,700 mton Bio-PET
PLA
PHA
Biodegradable polyesters
Bio-PE
Biodegradable starch blends
120,000 450,000
Bio-PVC
124,800 Bio-PA
Regenerated Cellulose
143,500 Bio-PET
290,000 PLA-Blends
PHA Bio-PP
147,100 PLA
216,000 Bio-PC
Others
Source: European Bioplastics Association
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18. Comparing bio-routes to different products
Theoretical Actual
Overall Kg sugar Overall Kg sugar
Product Technology process for 1 kg process for 1 kg Remarks
yield polymer yield polymer
Bio PLA Sugar to PLA In commercial operation,
via lactic 80% 1,25 > 62% < 1,60 Purac, Natureworks,
acid and others
Lactides
Bio PE Sugar to
ethanol to 31% 3,22 < 25% > 4,00 In commercial operation
ethylene to in Brazil, Braskem
PE
Bio PP Sugar to
ethanol to 47% 2,14 No Commercial suppliers
propylene
Bio PET * Bio MEG + MEG: India Glycols,
Bio PTA, 36% 2,77 < 20% >5,00 * PTA :via bio-isobutanol
from sugar (Gevo) or isobutene
* Bio-PET is not commerial, for the actual yield
calculation an assumption of 90% yield of the
theoretical yield for each process step has been made.
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19. EU policies to implement
a biobased economy
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20. EU putting the biobased economy high on the agenda
 Europe 2020
 Knowledge based Bio-economy
 Lead markets initiative for biobased products
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21. EU building a biobased economy
Societal
support
for
green
2011 Europe
economy
Strategy and 2020
Action plan &
on biobased Innovation
economy Union
National
Biobased Lead
Economy Market
Programs Initiative
Consumer
demand
for sustainable
products

22. Purac investments in a
biobased economy
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23. Addressing sustainability along value chain
Sustainable
Sourcing R&D Operations
Solutions
• Sustainable • Processes • Bioplastics (PLA)
Sourcing based on • Succinic Acid
• Reduction
Program alternative • Natural
targets for
focusing on substrates preservatives
Energy, Water,
most important • Improved • Health &
Packaging, and
raw materials production wellness
Waste
(palm oil, sugar, processes • Salt reduction
cocoa, …)
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24. Towards an even more sustainable Lactic
Acid process

25. The new gypsum-free Lactic Acid process
uses less raw materials and results in
less co-products

26. Demonstration plant
for gypsum-free
Lactic Acid process
in Gorinchem, NL
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27. Alternative substrates
Aim: Non-food substrates for non-food applications
Goal: A plant for producing PLA monomers using non-food
substrates by 2015
Examples of potential substrates:
Corn stover Bagasse Wood waste
Corn cobs EFB’s Paper waste
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28. Towards a lower carbon footprint
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29. Investments in
new biobased chemicals
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30. Purac has joined forces with the strongest
and most experienced chemicals intermediate
player in the world
Joint News Release 1 August 2011
BASF and CSM explore a bio-based succinic acid joint venture
The two companies will intensify their collaboration with the
aim to become the leading supplier in the succinic acid
market
LUDWIGSHAFEN, GERMANY and DIEMEN, NETHERLANDS, August 1,
2011 – BASF SE and Purac, a subsidiary of CSM nv, today
announce the start of negotiations to form a joint venture for the
production of bio-based succinic acid.
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31. Succinic Acid as a platform chemical
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32. Application fields of biobased Succinic Acid
Coolants Fuel
Food Pharma Deicers Additive
s
Fine
Polyamides Plasticizers Chemicals Personal Care
Biopolymer
Polyurethane Solvents Polyesters Intermediates
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